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Best Answer: No you don't. I got a notice in the mail about it. It says: "You will not be required to report the amount of your stimulus payment as taxable income on your 2008 federal income tax return. If you receive any federal benefits or federally financed benefits, those benefits generally will not be affected by any stimulus payment you receive." Hope this answers your question.

You have misunderstood what you read. For 2008 there is a one-time tax cut for income in the 10% bracket - the rebate is an advance on that. If your rebate is more than the tax cut would have given you, you don't have to pay back the extra. so your refund next year will be the same as it would have been if there had been no stimulus bill (no tax cut, and no rebate). But if you don't get a rebate this year and have any tax liability next year, or if your rebate this year is less than your tax liability next year and you haven't already gotten the maximum $600, then you'll benefit from the tax cut when you file your 2008 return. What this means to you is that if you would normally have gotten $2000 next year and you got the rebate this year, you'll get $2000 next year. If you did NOT get the rebate this year, and would have gotten $2000 next year, you will get MORE than $2000 next year if you owe any tax, because you'll also get the benefit of a one-year tax cut. If you get the rebate this year, you won't get that extra, because you will have already gotten it.

Yes. They already count your previous year's tax rebate as income in most states, and it has to be claimed again so you can expect this to be counted too if you're in one of those states.

Source(s): 3 thumbs down?!?!?

Take note people - I live in North Carolina - one of a number of states that TAXES your tax returns.
Every year I get statement from the IRS saying that xxxx amount was refunded to me and is being supplied to the NC state revenue board for calulation into my taxes for the following year - and every year it gets added into my gross income and I PAY TAX ON IT.

Don't give somebody a thumbs down on an answer unless you know what the FK you're talking about.